Secession and the President/Overseer/Savior

February 21, 2010

Over and over, I see the unrelenting search in the American populace for a President/Overseer/Savior, otherwise known as a “POS” (any resemblance of this definition of POS to the other definition that means “piece of s*** is entirely intentional as well as interchangeable). There appears to be a quixotic quest to find that one man or woman who has all the answers, and can be the newest, latest POS. I see:

“Ron Paul for President”
“Sarah Palin for President”
“Andrew Napolitano for President”
“Barack Obama…four more years”
“Mitt Romney in 2012”

What is it about the psyche of the American citizen that is constantly searching for a POS Messiah? Why does the average person invest so much emotion and belief (and money) in one person to solve all their problems?

Throughout human history we see a long list of kings, caesars, presidents, dictators and other potentates that have treated their subjects miserably, to the point that the people eventually overthrew them. But did those people learn? No! They usually just sat another person on the throne and started the process all over again.

In the Old Testament story of the children of Israel, they had God as their king. How could they improve on that? But they were so “ate up” to be like their neighbors and have a human POS that they began a monarchy that oppressed them for hundreds of years.

In the early days of our Republic, prior to the ratification of the US Constitution, the new colonies/nations of America governed themselves just fine with the Articles of Confederation. Under that document, there was no Chief Executive POS.

This American POS longing has its roots in the Hamiltonians of the late 18th Century. Alexander Hamilton was a staunch Royalist, desirous of an American king. He had many supporters in the new united States, and the reason that our Constitution made provision for an Executive Branch is entirely attributable to Hamilton’s tireless advocacy for a POS.

And just because it is the year 2010 doesn’t mean that Americans have learned anything about leadership and self governance. Quite the contrary.

I think that Americans, by and large, are a toxic combination of laziness and ignorance of the workings of a constitutional republic. These evil twins residing in their minds make them incapable of accepting the responsibility of self control that comes with self governance. It’s much easier to “hire” or elect a POS than to lift and carry the weight of your own liberty…even if it doesn’t work.

Day after day, I read all kinds of websites and blogs about political issues and political events. There are candidate debates, primaries, elections, state secession movements, Tea Party Rallies, Money Bombs, political leadership conventions (CPAC) and major party rallies. The traditional media outlets are the propaganda machines for Big Government, focusing American attention on the four-year cycle of electing the newest POS. The cycle now never truly ends.

Listen to the next radio news broadcast of your choice. Nearly every newscast, no matter what network, leads with a story of what the President is doing or has done. Doesn’t matter who is in office…the lead story is the same.

But do the media simply provide the populace with the info-tainment they demand, or do the media create the demand for the info-tainment that the populace is force-fed? Are the American people led by media or do they lead the media? Which comes first, the chicken or egg?

Alternatively, there is DumpDC.com (close to my heart), Campaign for Liberty, Second Vermont Republic, Texas Nationalist Movement, Tenth Amendment Center, LewRockwell.com, Secession.net, Antiwar.com, The Abbeville Institute and the list could go on and on. In these forums, the quest to find a new POS is conspicuously missing. These thought leaders strive to lead individuals into a love of the law…specifically Natural Law…not the blind following and worship of a POS.

It’s not even reasonable to think that a national POS can solve our problems. Contrary to the image projected, a POS is one person with very limited power. There are 535 junior POS Congress critters that also must be bought off. Then there are the political favors that must be doled out after an election to all the big campaign contributors. The American POS has degenerated into a carnival barker front-man who reads prepared speeches from a TelePrompTer to provide sound and video bytes for public consumption. A POS is an empty suit.

It is axiomatic that the present system of electing a POS guarantees that the newly-anointed POS will have made so many compromises to attain the office that he/she is the least qualified person to accept the office of POS. Integrity and compromise wage unending war with each other, and compromise wins the battles and the war. Leadership toward a return to liberty is antithetical to the world view of a POS.

So, what is the point of this diatribe about our American process of electing the person who will occupy the office if the President/Overseer/Savior? Simply to point out that the American political system is so hopelessly broken that it cannot be repaired. It must be replaced. Secession is the method whereby broken governments are replaced in a lawful, non-violent manner. At least we hope secession will be non-violent.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

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Texas as a Safe Haven Nation, Magnet For Wealth Preservation

February 20, 2010

(Editor’s Note: I ran this article back in October 2009, but have updated it with new information.)

The famous (and very accurate) trend watcher Gerald Celente has written about the concept of Safe Haven Nations (SHNs). A SHN is simply a sovereign nation that has implemented laws that protect the wealth and privacy of individuals, and is a place to which people could relocate.

Wealthy people worldwide are constant prey for rapacious predator governments. The wealthy are easy targets, since most everyone wants to be a wealthy individual, but many who are not wealthy resent them. And, with predictable regularity, governments create class warfare and class envy, so the lower class supports the government’s efforts to confiscate the assets of the wealthy class.

Wealthy people worldwide are also on the lookout for venues where they can store their wealth securely. Used to be that Switzerland was the “gold standard” of wealth preservation and privacy for the world. But recently, the US and EU governments went after the Swiss, and Swiss bank UBS agreed to disclose the identities of nearly 5,000 American citizens who have secure bank accounts in Switzerland. My understanding is that this disclosure violates Swiss banking law, but they are doing it anyway.

Wealthy people are often willing to relocate to another nation when they are forced to save their own lives. Sometimes, the wealthy have to leave mansions, bank accounts and other assets behind in a predator nation just to save their own skin. Recall Captain Georg von Trapp and the movie “The Sound of Music.” They did not actually walk out of Austria to escape the Nazis, but fled to Italy by train. But ask others from Vietnam, Iraq, Germany, South Africa and Rhodesia (Zimbabwe) about leaving with nothing but the clothes you are wearing.

In the event of a complete collapse of the dollar and the financial tsunami that will wash over the world, immigrating to a new country may be quite difficult, perhaps even impossible. Predator nations will do everything that they can do to prevent capital flight and may even prohibit emigration. Borders may seal tight and travel may be severely restricted.

Texas secession and the formation of a New Texas provides an historic opportunity for Texas to become the newest and most secure Safe Haven Nation. The people who will craft the new constitution for a New Texas should look to the banking and privacy laws of the nation of Lichtenstein for a template.

Nations like Panama, which has outstanding Safe Haven laws, are attracting wealth from all over the world. Others are:

Singapore
Hong Kong
Anguilla
The Bahamas
Bermuda
St.Kitts/Nevis
Cayman Islands
Isle of Mann

The problem with the list above is expatriation. These are islands and entities of small geographic size. Many have very restrictive immigration laws. So, they are limited on how many people they could allow to immigrate to their shores. Texas, however, is immense. And with an immigration policy based on the free market, a New Texas could become a worldwide magnet for wealth…and wealthy individuals.

Immigration law will have to be enacted that offers a procedure for an expatriate to either gain dual citizenship or individual citizenship through a fee arrangement. Many other nations will allow dual citizenship when an applicant deposits money in a bank in that nation. Some nations require deposits in the hundreds of thousands of dollars.

The most important single act that the government of the New Texas can do is to create a monetary system of only precious metals-backed currency. Then, they must couple that hard-money decision with competition in currency, which allows for the private minting of gold and silver coins. Texas Congressman Ron Paul has introduced a bill in Congress (HR 4248) that would create just such a system…although it has no chance in hell of passage.

But in a world where all the other nations print bogus currency, one nation with sound money would be an asset magnet for the world. Think about it. If inflation worldwide steals your buying power, but New Texas money at least protected the value of your cash, how could you go wrong by holding New Texas gold or silver money?

There is a glimmer of hope, though. The nation of China, the leading economy on the planet, recently began encouraging its citizens to invest in gold and silver. China’s government may be using this initiative to create a precious-metals-backed currency entirely under the radar. They might be planning to have the Yuan take over as the new reserve currency for the world. To view a 6 minute video about this story, go to: Secession, China and Gold Money.

If a New Texas has no income tax, no property tax and no inheritance tax, that will be a good start. But it will need to go further to attract wealth from all over the globe as a Safe Haven Nation. Banking law will need to protect the identity of anyone depositing assets in Texas. Texas will also have to refuse to enter into tax treaties with other nations, and then withstand the enormous pressure they bring to bear to comply.

Tax fraud is misleading a taxing entity and should be illegal. Tax evasion is the failure to declare assets, and is open to interpretation these days. Tax avoidance uses lawful means to minimize the amount of tax paid to any taxing entity. Many nations wish to blur the lines between tax evasion and tax avoidance. Texas should promote tax avoidance while offering absolute secrecy for individuals and corporations.

Texas should also create a constitutional law that provides for corporations to have bearer shares and no-par-value shares, as well as to operate with one director, who may also be the secretary, and who may reside outside of Texas. While annual meetings may be held anywhere, a registered office and agent must be in Texas, but no information concerning shareholders or directors needs to be disclosed. The minute book, resolutions, seal and shareholder register must be kept at the registered office. Most SHNs have these laws already.

If you are seeking a Safe Haven Nation, you might consider moving your wealth and your family to Texas now. Texas as a US state is the leading economic engine of the USA. Very pro-business, very independent. Lots of wealth already there. If any state of the Union is going to successfully secede, my money’s on Texas.

If you see the writing on the wall in your country (or state), and know that you must expatriate to a new country, the time is NOW to begin preparations. Your plans must be in place and executed before a meltdown in your country or state occurs. After the meltdown, it might be too late. You may become an inmate of Prison Planet.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


SECESSION IS IN THE AIR

February 19, 2010

by Kirkpatrick Sale

I don’t know if you’ve noticed it, but secession is in the air.

First of all, a fellow named Bill Miller has started a new website, SecessionNews.com, and it is a Drudge-Report-like compilation of anything connected with secession across the land and around the world. It is an extraordinary endeavor, and it reflects a great deal of talk about, interest in, separatism and independence these days. Miller, a retired computer engineer, has undertaken this, he says, because he has a passionate interest in getting Americans to understand that secession is a legitimate and honorable political strategy. Increasingly, it seems, they’re listening.

A regular contributor to the Miller site is Russell Longcore, who has also started up a new site of his own, the bluntly named DumpDC.com. Longcore, who seems to have insurance and publishing businesses in Georgia, writes long and vigorously about secession in his fairly regular posts. “Secession,” he says, “is on the lips of many Americans today. When they look at a Federal Government that is spinning wildly out of control, state secession begins to have an allure as a remedy. American has gone from a nation of sovereign states with a carefully defined Federal Government to a nation where states are but subservient territories of a rapacious, tyrannical ruling entity that entirely ignores any restrictions on its power.” His site figures to do something about that.

Last December another new voice was added to the cause, from something called AttackTheSystem.com that considers itself to represent the “radical Left.” It argued that secession should be supported because it was the best way to bring down the American empire and all that it stands for, including its support for corporate capitalism, longtime goals of the traditional Left. Vermont liberals of the Sanders persuasion should take a look at it (“Why the Radical Left Should Consider Secession).

In January one notable event, carried by the AP to the lengths of the land, was the launch of the campaign by Dennis Steele and Peter Garritano (and others) for an independent Vermont, but you know all that. You might not have known that another secession campaign, or something very close to it, was launched just before that in Texas, where the Texas Nationalist Movement (“Independence. In our lifetime”) announced its support for the Libertarian candidate for governor, Debra Medina. She is “in line with the core beliefs of our organization,” it said, and she believes that the people of Texas should vote on the issue of independence,” a core TNM demand. (Medina rejected the support, alas.)

(Just as an aside: Libertarians, particularly the smarter Paulists, are important allies for secessionists, since they get to the nullification/secession place with only a few prompts if they’re not already there. Ron himself has said it’s a workable option.)

Also in January the invaluable website TenthAmendmentCenter.com began tracking the number of legislatures coming back into session this year and considering bills to reassert their sovereignty and Tenth Amendment rights. By the end of January resolutions were introduced in 11 states (Washington, Arizona, Utah, Wyoming, Nebraska, Missouri, Mississippi, Kentucky, Illinois, Maryland, and Rhode Island). Last year (also tracked on this site) Tenth Amendment resolutions were introduced in 33 states, passed both houses in five, and were OK’d by the governors in two. The movement looks to be gaining momentum again.

In February that movement held a Tenth Amendment Summit, in Atlanta, assembling state representatives and candidates from across the country for a one-day closed meeting on strategies, and next day hearing presentations from Judge Napolitano, the Fox commentator, and Ray McBerry, a secessionist candidate for Georgia Governor.

Also in February there took place a remarkable conference boldly announced as on “Nullification, Secession, and the Human Scale of Political Order” in Charleston, South Carolina, maybe the first ever large-scale scholarly conference on secession open to the public. It featured many leading secessionist scholars, including Donald Livingston, Thomas DiLorenzo, SVR’s Thomas Naylor, Marshall DeRosa, Kent Brown, and yours truly, and was attended by upwards of 100 people, an impressive turnout, especially considering the admission cost of $200-$400.

A national Tea Party Convention was also in Febrary, not exactly a secessionist event but a measure of the underlying discontent that is leading people at least to protest the system (and the debt) they’ve been given and start thinking (some of them) about alternatives.

So what’s going on?

Basically, of course, it is the growing dissatisfaction, in blue states as well as red, and the purple and mauves, too, with a government grown too big, complicated, and corrupt to function. It can’t do health care, swine flue, stimulus payments, carbon limits, education, jobs, corporate bonus control, or airport security. It can send 30,000 soldiers to the sinkhole of Afghanistan, because Congress long ago gave up any role in military policy and the peace movement long ago folded up, but that’s what Presidents always do when they want to seem to be strong. Reagan invades Granada, Bush I Panama and Iraq, Clinton Kosovo, Bush II Iraq and Afghanistan. All for no reason than showing that they can do something in Washington.

But there’s more to it than that. There is a deep and fundamental perception that corporate America—briefly, Wall Street—really is in the saddle and runs the country, and for its own benefit, of course. Very successfully, too, and with complete impunity. It cares nothing for public opinion and has no shame. Now this may always have been true, but there used to be the accepted illusion that the corporations had some interest in making the people happy, or prosperous—“What’s good for General Motors is good for the country.” But now that the country owns General Motors they make no pretense that they are interested in spreading the wealth at all. And it is because the public perceives it—unconsciously if not knowingly—that there is the general sense of unease, of anger.

Many of those feeling this unease and anger, of course, don’t know what to do about it other than going to tea parties and shouting at town halls. But it is clear that a great many others are following the inexorable logical train that leads to secessionist thinking: this system is broken and can’t be fixed, party (including third party) politics is part of the problem not the solution, armed rebellion doesn’t have a chance against an apparently ruthless state, and the only way to change things and have a chance of a better world is through peaceful secession—getting out, not getting back. It has, too, the virtue of seeming to be doable—not like revolution or regime change or socialism or any other variant of extreme politics.

It’s not that I have any great faith in the mass of people of this nation using logic, but it just feels as if more people are following this line of thinking these days than… than any time since, say, 1865.

Kirkatrick Sale is the Director of The Middlebury Institute. You may reach him at: director@middleburyinstitute.net.


Secession: A Solution to the Washington Debt Threat

February 18, 2010

by Ron Holland

Frédéric Bastiat must have been looking toward the future of the United States today when he said, “When plunder has become a way of life for a group of people living together in society, they create for themselves in the course of time a legal system that authorizes it, and a moral code that glorifies it.”

I fear the federal government will plunder much of our private wealth, retirement plans and personal savings through hyperinflation, financial controls and confiscatory tax rates all in the name of protecting the public from a future debt crisis unless the states can secede from the Union and the crushing Washington debt load.

The first actual secession following several attempts by the New England states took place in the South and it ended with the defeat of the Confederate States of America. Now secession is again in the news and this time it may be the only solution to surviving the coming Washington national debt crisis.

We need to forget the causes of the earlier War Between the States, regional differences, slavery, tariffs and other related issues. The new secession effort will be state based but a national movement all across the United States ranging from Vermont to Georgia, Texas to Alaska etc. Economic survival and prosperity rather than regional issues will be motivating factor.

The first secession was a product of anti-southern tariff taxes resulting in the Southern states paying the majority of the revenue to fund the distant federal government. A mistaken defense of the dying institution of slavery by slaveholding elites in the South also contributed to the failed secession effort. Third, the advancement of corporate manufacturing profits and railroad expansionism by the Northeastern establishment elites were a major contributor. Finally the promotion of a conflict by the European Rothschild banking interests funding both the Northern abolitionists and the Southern secessionists guaranteed a violent breakup of what should have been a peaceful parting of the states.

Still the right of democratic state-by-state secession did not die at the point of a bayonet at Appomattox Court House in 1865. The belief in peaceful devolution of government powers and services to regions and local jurisdictions to allow citizens to control the power of politicians and government is a positive advancement for the 21st century. In addition, the right of devolution of states, geographic regions and groups around the world promotes competition and freedom.

I believe legal state secession from the Washington Empire just might become the only way for American citizens to escape the disastrous consequences from the coming global run to liquidate holdings of Washington treasury obligations and the dollar. Breaking free of the false chains that threaten our economic future from the likely Washington debt/dollar collapse might be our last chance to safeguard our financial security and liberty from the hyperinflation and crushing new tax increases to be forced on this and future generations from the bailouts and national debt.

Imagine no Washington income tax, no interference in the internal affairs of individual states, no involvement in perpetual wars around the world without a declaration of war, no Washington tax-feeding bureaucrats telling individual citizens, state legislatures or state agencies what to do.

Consider the benefits of sovereign states voluntarily participating in a decentralized republic or confederation, maybe like America’s first central government created by our patriot founding fathers, the Articles of Confederation. A decentralized nation where marriage, religious views, history, symbols, culture, abortion, gay rights etc. are determined on a state basis, Where citizens can eat, drink, smoke or do whatever with regulations and conduct governed by the norms of a state or locality rather than a distant federal government.

Can you envision a healthy economy, with minimal government debts combined with a rising standard of living and job growth guaranteed by low taxes, minimal regulations and currency competition? All of this without the Federal Reserve and Wall Street creating excessive bubbles followed by contraction and collapse and then demanding bailouts.

Imagine for a moment a people and sovereign states with future generations free from the illegitimate Washington national debt which threatens to destroy the prosperity, savings, housing values and jobs for our children and grandchildren. Review the US National Debt Clock which tells the entire story and our future. Today the official US National Debt breaks down to $40,079 per individual.

Finally, when you consider the total unfunded liabilities of Washington, the liability per American citizen is $177,515. Remember, none of the citizens of the individual states or America in general have had the opportunity to vote on the bailout or approve these debts most of which have gone to international corporations, Wall Street and world banking cartels. We, our children and future generations should not have to fund or pay off an illegitimate debt created just to bail out a few global corporations and wealthy special interests.

The Washington Empire is now run for the benefit of New York financial and economic interests who own and control most of Congress. Due to the recent bailouts and added debt which the majority of Americans opposed, the United States is now sadly on the path toward economic, debt and currency destruction.

Why should my state, South Carolina or other states join the federal government in future poverty, loss of freedoms and lagging economic prosperity with a dismal future determined by their foreign creditors? I say, it is time to free the states and citizens from the dark economic future which Washington and Wall Street have created. Just maybe we can finally be free at last from Washington’s national debt.

As Dr. Martin Luther King, from his I have a Dream speech said, “Free at last! Free at last! Thank God Almighty, we are free at last.” To quote another Southerner, Jefferson Davis was right when he stated, “I love the Union and the Constitution, but I would rather leave the Union with the Constitution than remain in the Union without it.”

I think it is time for Americans left and right to reconsider where our nation and the federal government have ended up. Few would question that the all-powerful Washington government living on borrowed debt and fake prosperity is a political model which has failed miserably.

Today the constitutional protections have become just another dead document through the actions of Bush and Obama. A recent, WSJ/NBC poll showed that only 3% of Americans believe the government is doing a good job. Given the margin of error in the poll, the real % could have been zero.

Let’s revisit the political wisdom of the original republic founded through the blood and sacrifice of our patriot founding fathers. Back to something like the original republic of sovereign state republics, the Articles of Confederation.

Today in 2010, join me in voting both for the dream of Dr. King and the vision of Jefferson Davis. It is time to replace the failed Washington leviathan with a new limited central government based on the original vision of sovereign states where we become again, “these United States” instead of “the United States.” I’m voting in 2010 and 2012 in support of the Tenth Amendment and for the right of nullification.

Finally, if necessary, I’ll support temporary secession efforts from the empire until we restore the original republic of our founding fathers. We must be free of an illegitimate national debt, an unconstitutional Federal Reserve and protected by currency competition and the choice of a currency based on the gold standard.

Copyright 2010 Ron Holland.

Ron Holland, a retirement consultant, works in Zurich and is a co-editor of the Swiss Mountain Vision Newsletter. He is the author of the special report, “Get Ready To Escape the Obama Retirement Trap” and you can email him for the complete report at ron.holland@bfi-consulting.com.


Mass Inflation Ahead — Save Your Nickels!

February 17, 2010

By James Wesley, Rawles — Editor of http://www.SurvivalBlog.com

Updated, February, 2010

I’ve often mused about how fun it would be to have a time machine and travel back to the early 1960s, and go on a pre-inflation shopping spree. In that era, most used cars were less than $800, and a new-in-the box Colt .45 Automatic sold for $60. In particular, it would be great to go back and get a huge pile of rolls of then-circulating US silver dimes, quarters, and half dollars at face value. (With silver presently around $15.50 per ounce, the US 90% silver (1964 and earlier) coinage is selling wholesale at 11 times face value–that is $11,000 for a $1,000 face value bag.)

The disappearance of 90% silver coins from circulation in the US in the mid-1960s beautifully illustrated Gresham’s Law: “Bad Money Drives Out Good.” People quickly realized that the debased copper sandwich coins were bogus, so anyone with half a brain saved every pre-’65 (90% silver) coin that they could find. (This resulted in a coin shortage from 1965 to 1967, while the mint frantically played catch up, producing millions of cupronickel “clad” coins. This production was so hurried that they even skipped putting mint marks on coins from 1965 to 1967.)

Alas, there are no time machines. But what if I were to tell you that there is a similar,albeit smaller-scale opportunity? Consider the lowly US five cent piece–the “nickel.”

Unlike US dimes and quarters, which stopped being made of 90% silver after 1964, the composition of a nickel has essentially been unchanged since the end of World War II. It is still a 5 gram coin that is an alloy of 75% copper and 25% nickel. (An aside: Some 1942 to 1945 five cent coins were made with 35% silver, because nickel was badly-needed for wartime industrial use. Those “War Nickels” have long since been culled from circulation, by collectors.)

According to http://www.Coinflation.com, the 1946-2008 Nickel (with a 5 cent face value) had a base metal value of $0.0677413 in 2008. That was 135.48% of its face value. (In recent months, with the recession, and a decline in industrial demand for copper, the base metal value of a nickel dropped below face value. But even at today’s commodities prices, you will start out at “break even” by amassing a stockpile of nickels.) I predict that as inflation resumes–most likely beginning in 2011–the base metal value of nickels will rise substantially.

The Root of the Problem

It is inevitable that any country that issues a continually-inflated fiat paper currency will run into the problem of their coinage eventually having its base metal value exceed its face value. When this happens, it is one of those embarrassing “emperor’s new clothes” moments. Unless a government takes the drastic step of lopping off a zero or two from their currency, this coinage problem is inevitable. In essence, we were robbed by our own government when silver coins were replaced with copper sandwich coins in the 1960s. I predict that essentially the same thing will soon to happen with nickels.

Helicopter Ben Bernanke will inflate his way out of the current liquidity crisis. through artificial lowering of interest rates, massive injections of liquidity, and monetization of the Federal debt. That can only spell one thing: inflation, and plenty of it. Mass inflation will mean much higher commodities prices (at least from the perspective of the US currency.)

I predict that until perhaps early 2011, the US Mint will continue to produce nickels with the current metals composition. In February, 2010 it was announced that the Obama administration had endorsed a change in the metal composition of pennies and nickels. Once this change is implemented, you will have to manually sort the “old” from the “new” debased nickels! But for now, there is still an open window of opportunity, during which time SurvivalBlog readers can salt away countless rolls and bags of nickels.

Within just a few years, the base metal value of a nickel is likely to exceed two times (“2X”) its face value. (10 cents each.) The nickel will then begin to disappear from circulation. (Gresham’s law is unavoidable.) Unlike the mid-1960s experience, the missing nickels will not cause a crisis, since pennies will suffice for making small change, and most vending machines now use dimes as their smallest purchase increment. Meanwhile, most bridge tolls and toll roads have inflated so that tolls are in 25 cent increments. The demise of the nickel will hardly cause a ripple in the news.

Unless the Treasury decides to drop the issuance of nickels entirely, the US Mint will within the next three years be forced to introduce a “new” nickel with a debased composition. It will possibly be zinc (flashed with silver) or possibly even aluminum.

Why Not Pennies?

You may ask, why not accumulate 95% copper (pre-1983 mint date) pennies? They already seen a spike in their base metal value to 2.2 cents each. But unfortunately, pennies have two problems: confusion and bulk. They are confusing, because 95% copper pennies are now circulating side-by-side with 97.5% zinc pennies. They are also about four times as bulky (per dollar of face value) as nickels.

With nickels you won’t have to spend time sorting out pre-1983 varieties. At present, visually date sorting pennies simply isn’t worth your time. Although I suppose that if someone were to invent an automated density-measuring penny sorting machine, he could make a fortune. As background: The pre-1983 pennies recently had a base metal value of about $0.0226 each.) Starting in 1983, the mint switched to 97.5% zinc pennies that are just flashed with copper. Those presently have a base metal value of only about $0.0071 each.

Pennies are absurdly bulky and heavy to store. Nickels are also quite bulky, but are at least more manageable than pennies for a small investor’s storage. (Storing pennies would take a tremendous amount of space and constitute a huge weight per dollar invested.)

The biggest advantage of nickels over pennies is that there is no date/composition confusion. At least for now, a nickel is a nickel. Even the newly-minted “large portrait” nickels have the same 75/25 cupronickel composition. But that is likely to change within just a couple of years. The US Mint cannot go on minting nickels at a loss much longer. My advice: start filling military surplus ammo cans with $2 (40 coin) rolls of nickels.

The .30 caliber size can is the perfect width for rolls of nickels. Each can will hold 11 bank rolls of nickels per layer, and the can will hold eight layers. On the top layer there is room for one more roll. Thus, they’ll hold a total of 89 rolls per ammo can, or $178. Any larger containers would be difficult to move easily. (Avoid back strain!) Cardboard boxes are fragile, and lack a carry handle. But ammo cans are very sturdy, have an integral handle, and they are relatively cheap and plentiful. They are available at military surplus stores and gun shows. The current difference between a nickel’s base metal value and its face value is fairly small, but trust me, it will grow! Someday, when nickels are worth 4X to 8X their face value, your children will thank you for it. Consider it an investment in your children’s future.

In December of 2006, the US congress passed a law making it illegal to bulk export or melt down pennies and nickels. But once the old composition pennies and nickels have been driven out of circulation, that is likely to change. In fact, a bill now before congress would remove pre-1983 pennies from the melting ban. In any case, once the base metal value exceeds face value by about 3X, an investor’s market will develop, regardless of whether or not melting is re-legalized. Count on it.

What if Uncle Sam Decides to Drop a Zero?

As previously noted in SurvivalBlog, inflation of the US dollar has been chronic, cumulative, and insidious. So much so that turns of phrase from old movies like “penny candy” and “its your nickel” (to describe the cost of a call on a pay phone) now seem quaint and outdated. When inflation goes on long enough, the number of digits required to express a price grows too large. (As has been seen with the Italian lira, the Zimbabwean dollar, and countless other currencies. One whitewash solution to chronic inflation that several other nations have chosen is dropping one, two, or even three zeros from their currency, in an overnight revaluation, with a mandatory paper currency exchange. The history of the past century has shown that when doing so, most governments re-issue only new paper currency, but leave the old coinage in circulation, at the same face value. This is because the sheer logistics of a coinage swap would be daunting. Typically, this leaves the holders of coinage as the unexpected beneficiaries of a 10X, 100X.or even 1,000X gain of the value of their coins. Governments just assume that most citizens just have a couple of pocketfuls of coins at any given time. So if a currency swap were to happen while you are sitting on a big pile of nickels, you would make a handsome profit. To “cash in”, you could merely spend your saved nickels in the new currency regime.

How To Build Your Pile of Nickels

How can you amass a big pile-o-nickels? Obviously just saving the few that you normally receive as pocket change is insufficient. Here are some possibilities:

1.) If you live in a state with nickel slot machine gambling (such as Nevada or New Jersey), or near an Indian tribal casino with nickel slots, go to a casino frequently and buy $50 in nickels at a time. Do your best to look like a gambler when doing so, by carrying a plastic change bucket with a few nickels in the bottom.

2.) Obtain nickels in rolls from your friendly local bank teller. Most “retail” banks are already accustomed to handing over rolls of coins to private depositors because of collector demand for statehood commemorative quarters and the new presidential dollar coins. Ask for $20 or $30 of nickels in rolls each time that you visit to do your normal banking deposits or withdrawals. It is best to ask for new “wrapped” (fresh Federal Reserve Bank issue) rolls. This way, you might have the chance of getting rolls with valuable minting errors–such as “double die” strikes. These are usually noticed and publicized a few months after the fact, and can be quite valuable. You will also be assured that you are getting full 40 coin rolls. (Getting shorted with 38 or 39 coin rolls is possible with hand-rolled coins.) If the tellers ask why you want so many, you can honestly tell them: “I’m working on a collection for my children.” (You need not tell them how large a collection it is!)

3.) If you live in or near an urban area and you operate a business, you can effectively “buy” rolled coinage from your commercial bank. (They generally will not do any business with anyone unless they have an account.) It might be worth your while to on paper start a side business with “Vending Service” in its name, and have business cards and stationary printed up in that name. Have that “DBA” business entity name added to your commercial bank account. At a high-volume commercial bank you could conceivably buy hundreds or even thousands of dollars worth of nickels on the pretense of stocking change for a vending business. Depending on your relationship with the bank, they may waive any fees if you ask for a few rolls of coins. Be advised, however, that if you ask for any significant quantity at one time, they will probably charge you a premium. (Down in the small print of your account contract, there is probably wording something like this: “Coin Issued – Per Roll: .03 Currency Issued – Per $ 100: .08” Before you cry “foul”, be aware that the Federal Reserve actually charges your bank a small premium when they obtain wrapped rolls of coins. (Most folks have held to the convenient fiction that a paper dollar was the same as a dollar in change. Obviously, it isn’t.) In effect, your commercial banker will just be passing along this cost to you. Unless they charge you a heavy fee, don’t worry about it. Ten years from now, when a $2 roll of nickel is worth $16, you’ll be laughing about how you obtained $4,000 face value in nickels at just a small fraction over their face value.

4.) If you know someone that has a machine vending business, offer to buy all of their excess nickels once every month or two, by offering a small premium.

5.) If you operate a “mom and pop” retail business with a walk-in clientele, put up a small sign next to your cash register that reads: “WANTED: Rolls of nickels for my collection. I pay $2.25 per 40 coin ($2) roll, regardless of year!” Once the nickel shortage develops (as it inevitably will), you should raise you premium gradually, to keep a steady stream of coin rolls coming in.

After this is posted, I’m sure that I’m going to get plenty of ridicule, accusing me of “hoarding.” So be it. Let me preemptively state that I realize that money tied up in coins will not benefit from the interest that a bank deposit would earn. But foregoing interest is not a major concern. Why? Because I think that it is a fairly safe bet that commodity price inflation will outstrip the prevailing interest rates for at least the next five years. In five years, the circulating nickel as we now know it, will be history, and it will be treated with nearly the same reverence that we now give to pre-’65 silver coinage.

We saw what happened when clad copper dimes, quarters and half dollars were introduced in 1965. We should learn from history. Something comparable will very likely soon to happen with nickels. You, as a SurvivalBlog.com reader, are now armed with that knowledge. You can and should benefit from it, before Uncle Sugar performs his next sleight of hand trick and starts passing off silver-plated zinc tokens as “nickels”.

Copyright 2010. All Rights Reserved by James Wesley, Rawles – http://www.SurvivalBlog.com™ Permission to reprint, repost or forward this article in full is granted, but only if it is not edited or excerpted.

About the Author:

James Wesley, Rawles is a former U.S. Army Intelligence officer and a noted author and lecturer on survival and preparedness topics. He is the author of “Patriots: A Novel of Survival in the Coming Collapse” and is the editor of SurvivalBlog.com–the popular daily web journal for prepared individuals living in uncertain times.


Secession and Citizen Opposition

February 16, 2010

The US Federal Government is a cancer that has affected nearly every organ and cell in the body of our nation. Trying to get rid of the cancer may very likely kill the host, just like chemotherapy or radiation do.

There is virtually no possibility of getting the citizens of any state to agree to secede in sufficient numbers that will move the lawmakers of that state to action. The biggest reason is that there are too many citizens of any state that feed at the Federal trough. If those folks saw that secession would mean the end of their jobs, benefits or incomes, they would fight secession with all their energy.

Here is a short list of people who are either Federal employees directly, or whose jobs are directly affected by Federal money:

• State government at every level, from Governor to dogcatcher, that receive and spend Federal money
• Federal bureaucracy personnel: there are tens of thousands of them in Federal offices including managers, IT personnel, secretaries, janitors, security guards, drivers, inspectors, etc.
• IRS personnel
• I.T. personnel
• Accountants: most accountants would not have work to do without the Federal tax code.
• Retirees: anyone who gets a Social Security check or Medicare benefits.
• Pensioners: see retirees. Most get both.
• Medicaid recipients: the poor who get their medical treatment from Uncle Sam.
• Military personnel: active duty would be unemployed. Retirees could lose pensions.
• Tax Attorneys
• Regulatory compliance attorneys
• Bankers: without the Federal Reserve and fractional banking, most people in banking would be out of a job.
• Post office workers: a seceding state would likely privatize this business.
• Law enforcement personnel: lots of Federal agencies have workers with badges and guns.
• College students with Federally backed loans or grants
• Mortgagees with Freddie Mac/Fannie Mae-backed loans
• Hospitals who accept Federal healthcare patients
• Doctors who accept Federal healthcare patients
• Nurses working for those doctors
• Hospital personnel: RNs, techs, orderlies, cafeteria workers, janitors.
• Federal Judges and their staffs
• Grant writers and grant recipients
• Colleges and universities: Huge staffs directly affected by college loans.
• Public schools
• Construction companies building and maintaining Federal structures
• Any company that gets Defense Department contracts of any kind
• Federal politicians and their staffs
• Social Security office workers: secretaries, inspectors, regulators, managers, executives
• Army Corps of Engineers
• Churches and non-profit organizations might lose their tax-exempt status and have to pay taxes.
• Farmers: some get Federal subsidies that would vanish.
• Manufacturers and suppliers of any product or service you can imagine that goes to the Federal government
• Lobbyists
• Property management companies that lease to Federal agencies
• Welfare office workers
• Media (radio, TV, internet, print media): all get advertising revenue from gov’t.
• And most of the workers above have families that rely on their incomes.
• And most of those workers and their families spend their incomes in businesses that rely on their incomes.

This list could go on and on if I thought about it some more. There are likely some obvious people I’ve omitted. But this list alone should give you a flavor of just how much the Federal government has infected America on every level.

Now…consider this wild card.

The inevitable economic collapse occurs. For some reason, the dollar begins its unavoidable hyperinflation because the worldwide economy collapses. The Dow Jones, Standard & Poors, and the NASDAQ all lose at least 50% of their value. The worldwide bond market collapses, and foreign/institutional boldholders refuse to accept dollars as payment. Banks close all over the USA en masse. Catastrophic layoffs begin at all levels of the economy. Unemployment soars to 40 or 50%.

The Federal Government panics…even more than they are panicking today…and starts laying off Federal workers. Their tax revenue is off by 50%.

OK…got the scenario? Now, at every level of society, from Washington to Walla Walla, every person has been affected by the collapse.

When the people on the list above aren’t getting paid anyway…or are getting paid with dollars that are becoming worthless…and the seriousness of the situation sinks in to their minds and stomachs…secession will finally make sense.

As I’ve said before, the number one job of the secessionist movements today it to educate the populace about the benefits of secession. The number two job of the secessionist movements is to begin to create a stable of the best people to occupy crucial positions in the state so it can secede. The politicians likely won’t help.

Albert Einstein said “We cannot solve our problems with the same thinking we used when we created them.” I say that we cannot solve our problems with the same PEOPLE that created them.

The politicians of today must be swept aside to make room for those who will bring the solutions to the table. What of politicians who have a change of heart, and join the movement? My opinion is that they should be “quarantined” and watched closely, and not allowed to participate in the solutions without constant supervision.

The secessionist movements all over the USA must acknowledge the near impossibility of pre-collapse secession, and devote themselves to the post-collapse secession model. Anything else is Tea-Party rah-rah hype just to raise money for their coffers.

Secession is the Hope for Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


Secession and the Power of the Sword

February 15, 2010

As I mentioned in the Power of the Purse article, you may have seen Edwin Vieira’s three-part series at DumpDC.com, which was a dissenting opinion about secession. His analysis is wrong in all but two points. The point he makes, besides the “Purse” is also unarguable. That is the absolute requirement of a seceding state to wield the Power of the Sword.

The Power of the Sword I speak of here is the State Militia. A seceding state MUST FIRST establish its own military, and the best form of a military for a new nation is a citizen militia.¹

Over the past 20-30 years, the only stories you might have seen in the media about militias were slanted toward gun-toting, camo-wearing crazies who preach white power, or overthrow of Washington, or some other nutty philosophy. But you will be hard pressed to find a serious treatment of the function of a state militia anywhere in the media. So, the very word “militia” has been tainted and associated with kooks. Believe me, that was their very intent.

Anyone who believes in big government cannot abide the idea that each state should have a “well-regulated militia.” The two entities…big government and state sovereignty exhibited through military resistance…are forever at enmity with each other. Brute force wins every time, and big government is the personification of brute force.

The Second Amendment of the US Constitution was supposed to guarantee the existence of state militias. Instead, Washington has inundated Americans with the very laws and regulations that violated the Amendment and purposely infringe upon the right to keep and bear arms. But Washington has always been much less concerned with citizens’ rights to carry concealed weapons than they are committed to stripping the states of their militias. It’s simply that they pulled a Harry Houdini sleight-of-hand ploy. They diverted the attention of the masses over weapons bans, assault rifle restrictions and concealed carry laws…and all the while, militias disappeared in all 50 states.

And the secessionists are deathly afraid of the topic of militias as armed resistance. Serious, substantive discussion about the re-formation and revitalization of the state militia is off-limits in most circles of the secessionist movement. I have likened this fear to posting a “No Guns In Our House” sign in your front lawn. You may be committed to non-violence, but the criminals aren’t.

It is not reasonable to believe that Washington will simply benignly accept the secession of ANY state. It is not reasonable to believe that DC’s lawyers and bureaucrats will negotiate with ANY seceding state in good faith to accomplish a peaceful separation. It is not reasonable to believe that Federal courts will uphold any legal effort at secession. It is whistling past the graveyard.

By the secessionists assuming the kneeling, cowering position of non-resistance, DC already knows that talk about state secession is an example of “big hat, no cattle.” This is also the main reason that Washington is not threatened by the “Tea Party” rallies. When Washington calls the bluff of the secessionists and says “put up or shut up,” all you will hear is crickets chirping from the state secession movements.

That is, secession movements in states without well-regulated militias.

The Founders of the United States, those men who signed the Declaration of Independence, knew that by affixing their signatures to that sacred document, they had signed their own death warrants. They knew that they would be hung for treason if captured. In this present-day environment in which Washington sees a terrorist lurking in every shadow, and each terrorist perceived as a threat to Washington’s very existence, secessionist leaders in every state will have a bulls-eye on their chests.

Washington’s going to take secession efforts very personally. Obama already said so in his Nobel Prize acceptance speech.

I’ve said time and time again that the timing of secession is everything. I’ve said that the best time for secession is after the coming economic meltdown. True enough. But no matter what happens with the dollar, no matter how bad the economy gets, Washington will still have a core of Army, Navy, Air Force and Marine personnel that will obey orders. They will still own tanks and helicopter gunships and jet fighters and warships. There will be a core of law enforcement personnel in every state that are willing to enforce Federal law.

In the past, I have focused your attention on the secession of 1989, when the Soviet Union dissolved and the 15 republics of the USSR became sovereign nations once again. I have held hope that such a relatively non-violent separation could occur here in the United States. But that faint hope is fast ebbing in me. I fear that the criminal class in Washington is staffed with much more desperate criminals than the ones that held together the Soviet Union.

I do not believe that there is a chance in Hell that secession from the United States of America can succeed without any seceding state FIRST revitalizing its citizen militia. Brute force only respects the resistance of an equal or superior brute force. Ladies and gentlemen, there will be blood spilled for liberty again.

If you disagree with me, I invite you to write with your arguments.

Then the future will show us which of us is right.

Secession is the Hope for Mankind. Who will be first…and wisest?

¹Vieira also wrote compellingly about militias. Find his articles at: News With Views. There are a bunch of them.

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.